Utama, W P; Chan, A P C; Zahoor, H and Gao, R (2019) Preferred entry mode choices and transformation of indonesian contractors' strategy in international markets. Journal of Construction in Developing Countries, 24(2), pp. 173-188. ISSN 1823-6499
Abstract
The selection of an appropriate entry strategy is an essential stage to expand business to overseas markets. Few studies have been undertaken to investigate this issue in the context of construction industry from the developing economies. This study aims to empirically investigate the entry strategy adopted by Indonesian contractors and observe the transformation of strategy to enter overseas construction markets (OCMs). Combination quantitative and qualitative research approaches was adopted to achieve the objectives. Data were obtained from survey of 103 Indonesian large contractors from 317 samples. Descriptive statistic and relative importance index (RII) were employed to analyse the data in which the results were then triangulated with interview findings. The results indicated those joint venture projects (JVP), branch office (BO) and representative office (RO) are the preferred entry mode choice adopted by Indonesian contractors. Four types of entry strategy transformation were identified. Each types of transformation showed that JVP or sole venture project (SVP) is directly used to pursue projects while BO or RO is set after operating for several projects. This study may provide a profound insight based on developing industries' experiences. For future research direction, the selection of entry mode by investigating the considerations influencing entry mode choice is encouraged.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | construction project; entry mode; Indonesian contractor; international expansion; market entry strategy |
| Index terms: | construction project, qualitative research, developing economy, survey, strategy, relative importance index, international expansion, interview, construction market, markets, market entry strategy, construction industry, international market, entry mode, transformation, joint venture |
| Subjects: | risk assessment, data collection methods, research design and methodology, business, economic analysis, production management, development economics, management, economic development, industry analysis, market analysis |
| Topics: | Risk Management, Project Management, Research Practice, Business Strategy, International Construction |
| Descriptive scope: | 4 PCTE |
N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here